Fledgling regulator, the General Insurance Standards Council, has promised to make the way it monitors brokers flexible, constructive and pragmatic.
The pledge came from Steve Barrow, head of the new regulator's monitoring team and his two private contractors, Ernst & Young and Pricewaterhousecoopers (PWC).
Addressing delegates in the workshop Monitoring in Practice, Barrow said: “The monitors will be constructive in their work with the membership.”
He said Ernst & Young and PWC would seek to advise brokers and intermediaries on what course of action they needed to take to meet compliance, rather than launching into immediate punitive action.
The monitoring team will aim to make visits to brokers every four years but this figure will vary massively, depending on how risky each broker's business is.
He said GISC would use a combination of market intelligence and financial statistics to determine which brokers needed to be monitored more closely.
